Superannuation Fund Consolidation - Australia's Best Program Delivery Company - Seven Consulting
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Superannuation Fund
Consolidation
Australia’s Best
Program Delivery Company
TEAMWORK ▪ TRANSPARENCY ▪ DELIVERY
Seven Consulting - Services
1. Program Delivery 2. PMO Services 3. Delivery Consulting
We deliver some of Australia's most complex and We provide PMO We provide delivery
challenging agile, traditional and hybrid programs. We establishment and capability uplift, sponsor
work with our clients to understand their organisational management, PMO and project manager
and program characteristics. These inform how we analyst and scheduling training, portfolio and
design our delivery approach to produce the best services, and tools for some program reviews to assist
outcome for our clients. The majority of our of the largest organisations our clients improve their
Consultants are scaled agile (SAFe) certified and we in Australia. program delivery.
have over $3bn of Agile and traditional Programs under
direct management.
All of our clients are reference sites
2 COPYRIGHT – SEVEN CONSULTING 2021 – ALL RIGHTS RESERVED Australia’s Best Program Delivery Company TEAMWORK ▪ TRANSPARENCY ▪ DELIVERY
Our Clients
Seven Consulting has a proven track record delivering critical outcomes for Australian organisations
across industries and domains. 100% of our clients are reference sites.
3 COPYRIGHT – SEVEN CONSULTING 2021 – ALL RIGHTS RESERVED Australia’s Best Program Delivery Company TEAMWORK ▪ TRANSPARENCY ▪ DELIVERY
Our clients and team are our top priority
Client Satisfaction Survey Results Team Satisfaction Survey Results
Year Satisfaction rating Survey questions Survey Date Satisfaction rating
2020 98.87% 14,455 Dec’20 97.90%
2019 99.08% 14,949 Jun’20 98.51%
2018 98.65% 15,450
Dec’19 98.30%
2017 99.08% 9,691
2016 98.94% 10,336 Jun ’19 98.82%
2015 99.35% 5,655 Dec ’18 96.44%
2014 99.26% 3,520 Jun ’18 96.40%
100% of our clients are reference sites
“You have the “Management
entire Seven is always
team behind responsive”
“It is clear that you only “No fuss, just good, “Very professional” you.”
recruit PM’s that are the honest and consistent “Seven
“Great consulting skills”
best in the business” project delivery” operates at a
“Seven personal level
manages QA even as the
really well” company
grows”
“Seven have gone above and beyond to “Highly professional staff, great “We say what “Seven knows
make this implementation a success. With support from the broader we do, and do how to keep
short notice their consultants jumped in organisation. Clear about what they what their high
and made a significant impact.” are good at and stick to this” we say” performers”
4 COPYRIGHT – SEVEN CONSULTING 2021 – ALL RIGHTS RESERVED Australia’s Best Program Delivery Company TEAMWORK ▪ TRANSPARENCY ▪ DELIVERY
How do we get 98%+ client satisfaction?
Why all our clients are reference sites.
High employee engagement, low
Hands-on ownership
turnover with no contractors
At a minimum, there is a monthly Quality
Assurance review of the consultant’s Bench support available to all
work. consultants at no cost to the client
Extensive mentoring and training support
strong IP and knowledge sharing Holiday and sick leave cover for
including internal project training, assignments
majority of our team are SAFe certified.
Strong in-house tooling to support
consultants, clients and quality
assurance
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How our values impact our delivery?
Teamwork Transparency Delivery
Teamwork has to be at the core Assumptions and poor A focus on outcomes focuses the
because you can’t deliver big communications kill projects, team and grows confidence. With
projects without great teamwork – whereas openness is the foundation a confident attitude, expert
we focus on ensuring that the of good relationships and reliable personnel and effective teams we
Seven team, the client team and delivery. We remain a completely always deliver to clients high
vendors work seamlessly together. independent consultancy. expectations.
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Super fund consolidation - background At the end of 2019, there were 204 superannuation funds and 596,000 SMSFs in Australia. The super funds were managing assets of $2.9 trillion across 26.3 million accounts. The number of funds vs. the size of the market result in some significant variation for both investment returns and management costs. It is broadly agreed that a degree of consolidation is desired: • To reduce the cost to serve for member • To improve the efficiency and consistency of return across the superannuation industry. The pressure to consolidate super funds is also accelerated by a series of other factors including: • Hayne Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry • Productivity Commission’s review of the efficiency and competitiveness of the super system • Increased regulation, prudential oversight and cost to play (e.g. SuperStream messaging) • The impacts of the COVID-19 Coronavirus on jobs, service industries and the economy This capability statement provides an overview of Seven Consulting’s recommended approach to super fund mergers and consolidation. (*) Source: APRA Statistics, December quarter 2019; ASFA 7 COPYRIGHT – SEVEN CONSULTING 2021 – ALL RIGHTS RESERVED Australia’s Best Program Delivery Company TEAMWORK ▪ TRANSPARENCY ▪ DELIVERY
Super fund consolidation
The trustees of super funds are obligated to ensure their actions are in the best interests of members.
Tangible benefits of a merger between 2 super funds generally include:
• Reducing costs associated with member administration and overall fund operating costs
• Improving value via lower cost or more comprehensive insurance
• Improving investment outcomes through scale and the pooling of talent
• Improving member services and engagement opportunities
In addition to the tangible benefits, a potential merger between super funds could also result in some of
the following strategic/intangible benefits:
• Delivering the scale required for access to certain types of investment opportunity
• Obtaining exposure to new member cohorts (ie age, industry, occupation)
• Expanding the geographic area in which the fund operates
• Expanding the breadth of skills available to the fund by combining executive teams and boards
• Broadening the range of products available to members
• Diversifying exposure to defined benefit schemes
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Our experience
Organisation Engagement description
Program management of the Link Groups acquisition of Superpartners and the major funds
which Superpartners was administering. The scope of the program involved the migration of
MTAA Super, Hesta, Hostplus, Cbus and AustralianSuper funds from Superpartners to Link
Transition management for 17 fund migrations
PMO management services across 3 demerger programs including the sale of
CommInsure to AIA and the sale of Colonial First State Global Asset Management to
Mitsubishi Trust and Banking Corp
Program management of the separation of NAB Wealth/MLC from NAB
Program management of the due diligence phase of the sale of MLC Life Insurance by NAB to
Nippon Life
PMO management of the separation of AMP Life from AMP Limited
PMO management for BNP to transition some of AMP’s portfolio to Resolution Life and
the simplification of AMP Wealth’s Master Trust superannuation investment
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Strategic decisions and context
There will be a number of strategic decisions that will influence the super fund merger and will need to be
decided up front.
Strategic Decisions Explanation
Commercial Structure • Trustee structure, use of an outsourced super fund
administrator
• Product gap between the 2 funds being merged
Product Gap Migration Approach • Migration using SFT, outsourcing provider, active accounts
Target Operating Model • Target processes
• Target systems and infrastructure
Processes Systems People • Target people structure and change management approach
• Implement by fund, by product, by geography, by adviser group
• Big bang vs maintaining BAU SLAs
Implementation Approach • Number of people to be trained
• Business outage window
• Inform APRA of intention to merge and keep them informed
Regulatory and Compliance • Identify and manage any compliance issues/risks
• Determine migration cost, determine target operating costs,
Business Case confirm if business case stacks up (ie benefits > cost of
migration)
10 COPYRIGHT – SEVEN CONSULTING 2021 – ALL RIGHTS RESERVED Australia’s Best Program Delivery Company TEAMWORK ▪ TRANSPARENCY ▪ DELIVERYOur approach
Our approach to super fund consolidation is based on 8 parallel workstreams running across 4
phases:
Phases
Planning and
Due Diligence Integration Hypercare
Sourcing
Commercial and PMO
Process and Business Analysis
Workstreams
Technology (Architecture, Application, Infrastructure)
Data Migration
Testing
Organisational Change Management
Implementation
Regulatory and Compliance
11 COPYRIGHT – SEVEN CONSULTING 2021 – ALL RIGHTS RESERVED Australia’s Best Program Delivery Company TEAMWORK ▪ TRANSPARENCY ▪ DELIVERYWorkstream objectives
The objective of each workstream is outlined below:
Workstreams Objectives
Commercial and PMO • Manage the deal, the integration program and stakeholders
Process and Business Analysis • Specify all product gaps, process gaps, reporting gaps, letters
requirements
• Manage the design/build/test of any changes required to
Technology (Architecture,
the technology solution including online portals,
Application, Infrastructure) interfaces, core registry, other systems
• Manage the design/build/test of the data migration of
Data Migration customers, employers, accounts, balances, inflight transactions
• Manage the test preparation/execution of integration/e2e/UAT/
Testing performance testing
• Define org change impacts, prepare training, deliver training, deliver
Organisational Change Management communications
Implementation • Prepare detailed business implementation plan and runsheets
Regulatory and Compliance • Manage relationship with regulators, ensure program compliance
12 COPYRIGHT – SEVEN CONSULTING 2021 – ALL RIGHTS RESERVED Australia’s Best Program Delivery Company TEAMWORK ▪ TRANSPARENCY ▪ DELIVERYHeat map of where the majority of the integration
work is likely to be
Legend: Low Medium High
Fund being acquired (source) Acquiring fund (target)
Commercial and PMO Commercial and PMO
Process and Business Analysis Process and Business Analysis
Technology (Architecture, Technology (Architecture,
Application, Infrastructure) Application, Infrastructure)
Data Migration Data Migration
Testing Testing
Organisational Change Management Organisational Change Management
Implementation Implementation
Regulatory and Compliance Regulatory and Compliance
13 COPYRIGHT – SEVEN CONSULTING 2021 – ALL RIGHTS RESERVED Australia’s Best Program Delivery Company TEAMWORK ▪ TRANSPARENCY ▪ DELIVERYImplementation considerations
There are a number of factors in each workstream which will determine the complexity,
timeframe and cost of the integration, including:
Workstreams Key considerations
• Type of merger, number of super admin providers invited to bid, number of
Commercial and PMO stakeholders, number of members, FUM, market share
Process and Business Analysis • Number of product gaps, number of additional reports, number of letter
templates
• Number of portals to be updated, number of interfaces to be updated,
Technology (Architecture, number of core registry enhancements, infrastructure upgrade
Application, Infrastructure) requirements, vendor dependencies
• Number of product gaps, quality of source data, existence of data migration
Data Migration routines which can be reused, complexity of financial reconciliation,
treatment of inflight transactions, additional data storage and testing
environments
• Number of product changes, number of new reports, number of new
Testing letters, number of new interfaces, availability of skilled testing team
• Number of staff impacted, number of redundancies, number of people to
Organisational Change Management be trained, training vs BAU commitments
• Complexity of business implementation, number of members to be
Implementation migrated, outage window, regulatory changes, contractual dates
Regulatory and Compliance • Regulators stance on the merger, number of compliance issues
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Australia’s Best Program Delivery Company
Award Winning Company
Woolworths Group IT 6x
Exceptional Services Award
Winner 2018
Seven Consulting Pty Ltd ABN 44 100 234 179
SYDNEY Level 13, 179 Elizabeth Street, Sydney, New South Wales 2000 +61 (0)2 8267 5000
MELBOURNE Level 5, 520 Collins Street Melbourne, Victoria 3000 +61 (0)3 9617 8200
MANILA 7th Floor, 6780 Jaka Building, Ayala Ave, Makati City, Philippines
www.sevenconsulting.comAppendix - Our superannuation experience
Organisation Engagement description
Program management of various projects to establish NAB/MLC’s SuperStream capabilities to
support contributions and rollovers
Technical program management of CBA’s SuperStream capabilities to support contributions and
rollovers
Program management of the eContributions program which introduced the SuperStream electronic
messaging for contributions. Program management of the Insurance Remediation program
Quality assurance and testing for AMP’s SuperStream projects
Project management of CRM project for Link, AustralianSuper, cbus and Hostplus
Review of enterprise PMO (Program Management Office)
17 COPYRIGHT – SEVEN CONSULTING 2021 – ALL RIGHTS RESERVED Australia’s Best Program Delivery Company TEAMWORK ▪ TRANSPARENCY ▪ DELIVERYYou can also read
